Oviedo finance staff and auditors report strong reserves, warn ARPA deadline
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Summary
City staff and the independent auditor told the council that fiscal-year 2024–25 results were strong: investment income and reserves grew materially, water/sewer funds performed to plan, and auditors issued a clean opinion while reminding the council ARPA funding must be spent by Dec. 2026.
Oviedo officials told the City Council on April 20 that the city ended fiscal 2024–25 in a notably strong financial position, with sizable investment returns and healthy fund balances.
Jerry, speaking for the finance team, said ad valorem revenue was about $23,000,000 and other taxes roughly $6,300,000. He highlighted that investment income has risen dramatically from about $30,000 four years ago to an average in the low millions in recent years, producing roughly $2.9 million that bolstered the general fund balance. "Our investment income has been very, very strong," Jerry said, adding that the city’s projected available fund balance is about $22.5 million, representing more than half of annual expenditures.
The presentation covered proprietary funds as well: water and sewer operating revenues and capital contributions were reported as on plan, with an unrestricted water/sewer balance approaching $25 million. Staff noted a $9.5 million utility revenue note tied to stormwater work and an expected FEMA reimbursement of $2.9 million for the McKinnon project that would improve the stormwater fund’s cash position once received.
Audit partner Matthew Cano of Pervis Gray and Company told the council the firm issued an "unmodified opinion" on the city’s financial statements, the highest standard in a financial attestation engagement. He also said the city had no material internal-control findings and no federal single-audit findings for the ARPA funds tested. Cano noted the audit includes an emphasis-of-matter paragraph for a GASB accounting pronouncement that required a restatement this year, and he reminded the council that roughly $21 million in ARPA funds must be spent by the end of calendar 2026 unless the federal government changes the deadline.
Council members asked for clarification about depreciation reporting in stormwater and other funds and about the timing of the FEMA reimbursement; staff said the FEMA payment is expected but the timing depends on FEMA processes. The finance team and auditors said they would continue working with council and provide follow-up details if needed.
What’s next: staff will incorporate the auditors’ notes into the official annual comprehensive financial report (CAFR) and continue tracking ARPA expenditures toward the federal deadline.
